Latin America's largest airline, reported a wider-than-forecast net loss in the second quarter of US$92 million, as it struggles to overcome tough economic conditions in its key markets. The airline made a loss of US$50 million in the same period a year ago, a quarter that is traditionally weak for seasonal reasons.
Brazil's interim President Michel Temer vetoed on Tuesday an article in a new law, which would allow foreign investors to take 100% ownership of Brazilian airlines, according to the official Gazette. The article is part of a law seeking to modify areas of the aviation sector, mainly in order to allow the state-owned airport infrastructure firm, Infraero, to restructure its debts.
Brazil’s low-cost airline Gol announced that it is eliminating the WebJet brand, the rival airline that it took over earlier this year, cutting 850 jobs and reducing domestic capacity in the process.
Chile's newly merged regional carrier LATAM Airlines said on Monday it would spend 7.87 billion dollars on its fleet through 2014. The airline aims to have a 359-strong fleet by 2014, up from the 319 planes projected for this year.
Chile’s flag-carrier LAN announced that as of Wednesday it will cut Chile-South America fares as much as 40%. For years LAN has used what is known as the low-cost carrier model on its domestic flights, which has greatly reduced fares on its domestic flights and increased traffic.
TAM, Brazil's largest airline, reported a fourth-quarter profit on rising ticket prices, fanning expectations of more profitable operations in the year ahead despite recent cost pressures.
Chile Lan Airlines planned 3.2 billion dollars acquisition of Tam SA was approved by Brazil’s antitrust regulator, clearing the final regulatory hurdle for the formation of the world’s second-largest carrier.
Chilean flag-carrier LAN SA and Brazil's TAM SA have unveiled senior management changes as their plan to merge advances. The merger is expected to be completed in the first quarter, and will see the two airlines taken over by a new holding company, LATAM Airlines Group, the companies said in a statement.
LAN Airlines said it hopes its multibillion-dollar takeover of Brazil's TAM will be completed in the first quarter of 2012, but it is studying conditions imposed by Chile's regulator.
The antitrust unit of Brazil's Finance ministry on Thursday recommended the approval of a plan by Chilean airline LAN to buy rival Brazilian rival TAM Linhas Aereas, saying the deal will not harm competition in the country's civil aviation market.